How much do I risk per trade?

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How much do I risk per trade?

Postby doaausef3li » Wed Jul 31, 2019 9:32 pm

How much do I risk per trade?
To answer the first question we need to determine the size of our position. The volumetric method I personally use is the fractional factorial method. In this way, in each position a certain percentage of our capital is risked and if our stop is hit, that percentage of our capital is lost. Given my mood, I do not risk more than 1% of the position. Now with 1% risk on the position and having $ 100,000 and a 50 stop (if you have a fixed stop for all positions, you can better benchmark the largest or medium stop) our size: 2 lots or 200,000 units used 2: 1.بونص فوركس
Here Trader decides to invest only a percentage of his capital in Trader's account. You can find this figure with Leverage. For example, I don't like leverage above 30: 1. That is, the practical leverage of the account (2) should be at most 30: 1. Having a 2 lot position, our minimum account balance should be around $ 6700 (30/200000). I put $ 10,000 in a safe zone. I put this in my trading account. I divide the rest of the money into lots, save some for spending, invest some money elsewhere, and keep the percentage as a backup to the bank.افضل شركات الفوركس في الامارات
Now for a broker you have $ 10,000 but you actually have $ 100,000. Your leverage is actually 2: 1, 20: 1. Each lost trade reduces your account by $ 1000 and each profitable trade (assuming a risk-to-risk ratio of 1) deposits $ 1000 into your account. Note that you should always base your calculations on one hundred thousand dollars and not the amount of money in your account. That is, if at the end of the month, our account had a $ 5,000 growth, we would have earned 5%, not 50%.
(2) Practical Leverage: This is the leverage that is actually accounted for. Knowing this leverage is essential to prevent margin from falling.
Real Leverage: This is the leverage that goes into your capital. Knowing this leverage as a high-risk sensor is a must.
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